Just days before it was to take effect, the courts block Labor Department rule that would have extended overtime to 4.2 million workers
US District Judge Amos Mazzant III has issued an injunction, effectively blocking the Obama Administration’s rule that would have extended overtime pay to more than 4 million American workers. The rule would have required employers to pay time-and-a-half to employees who worked at least 40 hours in a week and whose yearly earnings were less than $47,476. The rule was expected to affect nearly every sector of the US economy. States and business groups alleged in lawsuits that the increase in salary threshold was arbitrary.